Qantas Profits to fall by 80%

Qantas said it expects its profits to fall by as much as 90% amid growing losses at its international operations and its "highest ever fuel bill".

It has forecast a profit before tax of between A$50m ($48.6m; £31.6m) and A$100m for the year ending 30 June.

That's down from a profit before tax of A$552m during the same period a year earlier.

The firm's shares dropped as much as 18% on the Australian Securities Exchange after the profit warning.

"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the Group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said in a statement.

The airline said that fuel costs for the period are expected to rise to A$4.4bn, an increase of approximately A$700m from the same period a year earlier.